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answer the following based on the company above: Marketing Mix Issues in Channel Management 1.What are the issue/s that the business has faced when it comes to their products, price promotion, and place? 2.Swot Analysis/Discussion 3.Recommendations

answer the following based on the company above: Marketing Mix Issues in Channel Management 1.What are the issue/s that the business has faced when it comes to their products, price promotion, and place? 2.Swot Analysis/Discussion 3.Recommendations

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Please answer the following based on the company above: Marketing Mix Issues in Channel Management

1.What are the issue/s that the business has faced when it comes to their products, price promotion, and place?
2.Swot Analysis/Discussion
3.Recommendations

I will post the remaining info of the company

A. Channel Structure What kind of channel structure does the business have? The SPA Alhambra Beauty and Wellness follows a direct channel structure of business, which means that it operates without intermediaries or middlemen, directly connecting with its customers. This allows the spa to maintain a more personalized and hands-on approach, as well as exert greater control over the customer experience, from booking appointments to delivering services and addressing any concerns or feedback. By eliminating additional layers of distribution, the SPA Alhambra Beauty and Wellness can effectively streamline its operations, enhance efficiency, and ensure direct communication and interaction with its valued clientele. B. Channel Members As a retailer who offers goods and services directly for the personal consumption of the consumers, who are the principals and distributors of the business? Based on the information provided, SPA Alhambra Beauty and Wellness is a retailer offering goods and services directly to consumers, the principals of the business would typically refer to the owners or partners who have a controlling interest in the company. The principals would be responsible for managing the operations, making strategic decisions, and ensuring the overall success of the business. The distributors, in this context, would refer to the suppliers or vendors that provide the goods and products sold by SPA Alhambra Beauty and Wellness. These distributors could include manufacturers, wholesalers, or other suppliers who supply the spa with the products they offer to their customers. It's important to note that without specific information about the ownership structure or supply chain of SPA Alhambra Beauty and Wellness, it's difficult to provide precise details about the principals and distributors involved. C. Facilitating Agencies Who are the facilitating agencies of the business and what are their roles? When it comes to transportation, SPA Alhambra has its company owned vehicles, specifically three standard vans which they use for business transactions like getting products from their manufacturer, visiting other branches, and even going on business trips. The business also has their own storage room for their inventory in every branch. They utilize this room in storing their products e.g. soap bars and small bottle containers. SPA Alhambra also does all the marketing and advertising by themselves. They've created their own website and made use of Facebook as their platform in advertising their products and interacting with their customers in terms of inquiries and bookings. This is where they share their deals, discounts, and campaigns. They also mentioned reaching out to small influencers in promoting and disseminating information about their products and services that created a huge impact to the popularity of the business. The admins of the organization are the ones responsible for editing, making, posting, and managing all forms of advertisements made in social media. When it comes to the physical evidence like posters, brochures, store signages, and the likes, they rely on Robiank Marketing Advertising Co. in Bacolod City in making customized designs for their business. In terms of handling the business accounts, they have their own bookkeeper in keeping track of how much the business earns and spends. Their bookkeeper is the one who documents and prepares daily financial transactions. SPA Alhambra's business corporate account is PNB which they also use when collecting payments from their clients. The modes of payment they have are through cash, GCash, or via bank transfer. Lastly, SPA Alhambra's employees are under no insurance but plans on applying under PNB still. All in all, the business not really hire facilitating agencies in doing work for them. SPA Alhambra mentioned that they want to do all business transactions inside the company as much as possible where they know and trust their employees well rather than relying on channel members. III. CHANNEL DESIGN DEVELOPMENT
Transcribed Image Text:A. Channel Structure What kind of channel structure does the business have? The SPA Alhambra Beauty and Wellness follows a direct channel structure of business, which means that it operates without intermediaries or middlemen, directly connecting with its customers. This allows the spa to maintain a more personalized and hands-on approach, as well as exert greater control over the customer experience, from booking appointments to delivering services and addressing any concerns or feedback. By eliminating additional layers of distribution, the SPA Alhambra Beauty and Wellness can effectively streamline its operations, enhance efficiency, and ensure direct communication and interaction with its valued clientele. B. Channel Members As a retailer who offers goods and services directly for the personal consumption of the consumers, who are the principals and distributors of the business? Based on the information provided, SPA Alhambra Beauty and Wellness is a retailer offering goods and services directly to consumers, the principals of the business would typically refer to the owners or partners who have a controlling interest in the company. The principals would be responsible for managing the operations, making strategic decisions, and ensuring the overall success of the business. The distributors, in this context, would refer to the suppliers or vendors that provide the goods and products sold by SPA Alhambra Beauty and Wellness. These distributors could include manufacturers, wholesalers, or other suppliers who supply the spa with the products they offer to their customers. It's important to note that without specific information about the ownership structure or supply chain of SPA Alhambra Beauty and Wellness, it's difficult to provide precise details about the principals and distributors involved. C. Facilitating Agencies Who are the facilitating agencies of the business and what are their roles? When it comes to transportation, SPA Alhambra has its company owned vehicles, specifically three standard vans which they use for business transactions like getting products from their manufacturer, visiting other branches, and even going on business trips. The business also has their own storage room for their inventory in every branch. They utilize this room in storing their products e.g. soap bars and small bottle containers. SPA Alhambra also does all the marketing and advertising by themselves. They've created their own website and made use of Facebook as their platform in advertising their products and interacting with their customers in terms of inquiries and bookings. This is where they share their deals, discounts, and campaigns. They also mentioned reaching out to small influencers in promoting and disseminating information about their products and services that created a huge impact to the popularity of the business. The admins of the organization are the ones responsible for editing, making, posting, and managing all forms of advertisements made in social media. When it comes to the physical evidence like posters, brochures, store signages, and the likes, they rely on Robiank Marketing Advertising Co. in Bacolod City in making customized designs for their business. In terms of handling the business accounts, they have their own bookkeeper in keeping track of how much the business earns and spends. Their bookkeeper is the one who documents and prepares daily financial transactions. SPA Alhambra's business corporate account is PNB which they also use when collecting payments from their clients. The modes of payment they have are through cash, GCash, or via bank transfer. Lastly, SPA Alhambra's employees are under no insurance but plans on applying under PNB still. All in all, the business not really hire facilitating agencies in doing work for them. SPA Alhambra mentioned that they want to do all business transactions inside the company as much as possible where they know and trust their employees well rather than relying on channel members. III. CHANNEL DESIGN DEVELOPMENT
I. COMPANY BACKGROUND A. History What is the history of the business? The owner of SPA Alhambra before loves to go to the spa and have her so-called "me time". She takes time out each day to relax and renew herself. For her love of self-care and wellness, she thought about having her own spa to share with people her experiences being treated physically and mentally beautiful. Then later on, SPA Alhambra Beauty and Wellness was created. SPA Alhambra Beauty and Wellness started as a small business. As time went by, the locals really loved to have their spa time or to relax after a tiring day. They did not expect that a lot of customers would start to spread the word about SPA Alhambra and would label their business as "luxurious". She started the business July 19, 2020 up to the present, and from one building to another, SPA Alhambra east branch and SPA Alhambra Villamonte were created. B. Nature of Business What is the nature of the business? The SPA Alhambra Beauty and Wellness is centered on profit-earning motives and does compromise the satisfaction of their clients. They are both a product and service-oriented company that specializes in offering top-quality massage, facial, nails services, and beauty products. At their establishment, they value the happiness of their clients and believe that their satisfaction is key to ensuring the continuity of their transactions. They work diligently to build long-lasting relationships with their customers by offering personalized and tailored services and products that cater to their unique needs. They understand that the key to profitability lies in providing high-quality services that leave a lasting impression on their clients. This approach has enabled them to establish a loyal customer base that is committed to their brand, thus guaranteeing the continuity of their business. C. Product Offerings What are the products/services offered by the business? The business offers beauty products or what they call "Alhambra Collection". This includes Beauty Soaps (Glutathione Soap and Kojic Soap with moisturizing milk), Ultra Whitening Lotion, Beauty Creams (BB Cream with sunscreen, Bleach Cream Face Cream, and Armpit Whitener), Scented Sanitizers Entacia Sanitizer with moisturizing beads), and Scented Alcohols (Entacia Alcohol, Eternity Alcohol, and Versace Alcohol all with 70% Solution). Services offered by SPA Alhambra are Haircuts (with shampoo and blowdry), Natural Rebond and Volume Rebond (Milk Rebond, Matrix, and Loreal), Hair Color (Organic, Matrix, and Loreal), Root Color (Bleach, Highlights, Balayage, and Correction), Treatment (Cellophane, Keratin, Hair Spa, Powerdose, and Metal Detox), Perming (Digital and Korean that includes free hair treatment and haircut), Loreal French Hair Glossing, and Hair Extensions (any length for 100 strands). They also provide package deals for haircuts, colors, treatments as well as removal of hair extensions including returns and additional strands with a minimum of 30 pieces for the extensions. D. Target Customer/s Who are the target customers of the business? The target market of SPA Alhambra is a broad and diverse group of people. Everyone from young to old, working professionals to retirees can enjoy the many benefits of spas and spas treatment. Also, those who want to improve their appearance, feel better about themselves to have a relaxing experience. II. MARKETING CHANNEL
Transcribed Image Text:I. COMPANY BACKGROUND A. History What is the history of the business? The owner of SPA Alhambra before loves to go to the spa and have her so-called "me time". She takes time out each day to relax and renew herself. For her love of self-care and wellness, she thought about having her own spa to share with people her experiences being treated physically and mentally beautiful. Then later on, SPA Alhambra Beauty and Wellness was created. SPA Alhambra Beauty and Wellness started as a small business. As time went by, the locals really loved to have their spa time or to relax after a tiring day. They did not expect that a lot of customers would start to spread the word about SPA Alhambra and would label their business as "luxurious". She started the business July 19, 2020 up to the present, and from one building to another, SPA Alhambra east branch and SPA Alhambra Villamonte were created. B. Nature of Business What is the nature of the business? The SPA Alhambra Beauty and Wellness is centered on profit-earning motives and does compromise the satisfaction of their clients. They are both a product and service-oriented company that specializes in offering top-quality massage, facial, nails services, and beauty products. At their establishment, they value the happiness of their clients and believe that their satisfaction is key to ensuring the continuity of their transactions. They work diligently to build long-lasting relationships with their customers by offering personalized and tailored services and products that cater to their unique needs. They understand that the key to profitability lies in providing high-quality services that leave a lasting impression on their clients. This approach has enabled them to establish a loyal customer base that is committed to their brand, thus guaranteeing the continuity of their business. C. Product Offerings What are the products/services offered by the business? The business offers beauty products or what they call "Alhambra Collection". This includes Beauty Soaps (Glutathione Soap and Kojic Soap with moisturizing milk), Ultra Whitening Lotion, Beauty Creams (BB Cream with sunscreen, Bleach Cream Face Cream, and Armpit Whitener), Scented Sanitizers Entacia Sanitizer with moisturizing beads), and Scented Alcohols (Entacia Alcohol, Eternity Alcohol, and Versace Alcohol all with 70% Solution). Services offered by SPA Alhambra are Haircuts (with shampoo and blowdry), Natural Rebond and Volume Rebond (Milk Rebond, Matrix, and Loreal), Hair Color (Organic, Matrix, and Loreal), Root Color (Bleach, Highlights, Balayage, and Correction), Treatment (Cellophane, Keratin, Hair Spa, Powerdose, and Metal Detox), Perming (Digital and Korean that includes free hair treatment and haircut), Loreal French Hair Glossing, and Hair Extensions (any length for 100 strands). They also provide package deals for haircuts, colors, treatments as well as removal of hair extensions including returns and additional strands with a minimum of 30 pieces for the extensions. D. Target Customer/s Who are the target customers of the business? The target market of SPA Alhambra is a broad and diverse group of people. Everyone from young to old, working professionals to retirees can enjoy the many benefits of spas and spas treatment. Also, those who want to improve their appearance, feel better about themselves to have a relaxing experience. II. MARKETING CHANNEL
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What kind of process/strategy does the business do in order to determine which channels will be most effective in reaching target customers and achieving business' goals? As mentioned above, SPA Alhambra wants to do all business transactions inside the organization as much as possible rather than relying on channel members aside from Robiank Advertising Co. which deals with the store's signages, tarps, and printings and PNB as their business corporate account as mentioned. The business looked into its accessibility and hassle-free transactions with the two channels. Other than that, SPA Alhambra does not have any other processes in determining which channel members will be most effective but rather, they have processes in determining and keeping their employees on track and effective in doing their roles in reaching customer satisfaction and achieving business goals. IV. MANAGING THE MARKETING CHANNEL A. Motivating the Channel Members How does the business motivate their channel members/partners to do their part of the work efficiently and effectively? SPA Alhambra are aware of their partners' and employees' needs in operating any business activities for them. The business provides leadership and shows transparency in their work. When it comes to their manufacturer, they are being provided with a comprehensive flow of timely information about how they want their products to be when it comes to the packaging, ingredients, and ect. Both parties have an exchange of information that benefits one another. For Robiank Advertising Co. and PNB, as mentioned, they looked into their accessibility and hassle-free transactions. SPA Alhambra also mirrors them with accessibility and hassle-free transactions. The business reciprocates and provides leadership and transparency in their work that keeps both of their channels and employees motivated in doing their part of the work efficiently and effectively. B. Marketing Mix Issues in Channel Management What are the issues that the business has faced when it comes to their products, price promotion, and place? The company face difficulties with these areas in their marketing mix, 1. Lack of commercial staff The business needs a commercial staff who will handle and optimize the process of purchasing a product and selling it to customers. The staff should be sales driven and expert with the service that the business offers to provide suggestions for complimentary products that the customer can buy in the stores. 2. Invisibility of your business The business lacks their brand awareness, the customer should be aware that their store in Mandalagan is not only a furniture business but a spa and salon. 3. Problems with the price of your product The business is having difficulties with their pricing. It is important to know their target market and provide information or campaigns that educate customers why the prices are just and right. C. Logistics Systems 1. Transportation What mode of transportation does the business use when ordering goods from suppliers or going on business transactions from places? The company efficiently manages its logistics operations by leveraging its fleet of vehicles. Recognizing the importance of maintaining control and optimizing efficiency, the company has invested in its own transportation infrastructure. By utilizing their own vehicles, they can closely monitor and tailor their logistics processes to meet specific requirements. This approach allows for greater flexibility, reduced reliance on external providers, and improved delivery timelines. With a dedicated fleet at their disposal, the company ensures that goods are transported securely and reliably, enhancing customer satisfaction and reinforcing their commitment to delivering exceptional service. 2. Materials Handling How does the business handle or move its materials/machineries/equipment from one place to another inside your workplace? Do you use any equipment/devices when moving and storing goods? If so, what are those equipment/devices your business uses when handling materials?
Transcribed Image Text:What kind of process/strategy does the business do in order to determine which channels will be most effective in reaching target customers and achieving business' goals? As mentioned above, SPA Alhambra wants to do all business transactions inside the organization as much as possible rather than relying on channel members aside from Robiank Advertising Co. which deals with the store's signages, tarps, and printings and PNB as their business corporate account as mentioned. The business looked into its accessibility and hassle-free transactions with the two channels. Other than that, SPA Alhambra does not have any other processes in determining which channel members will be most effective but rather, they have processes in determining and keeping their employees on track and effective in doing their roles in reaching customer satisfaction and achieving business goals. IV. MANAGING THE MARKETING CHANNEL A. Motivating the Channel Members How does the business motivate their channel members/partners to do their part of the work efficiently and effectively? SPA Alhambra are aware of their partners' and employees' needs in operating any business activities for them. The business provides leadership and shows transparency in their work. When it comes to their manufacturer, they are being provided with a comprehensive flow of timely information about how they want their products to be when it comes to the packaging, ingredients, and ect. Both parties have an exchange of information that benefits one another. For Robiank Advertising Co. and PNB, as mentioned, they looked into their accessibility and hassle-free transactions. SPA Alhambra also mirrors them with accessibility and hassle-free transactions. The business reciprocates and provides leadership and transparency in their work that keeps both of their channels and employees motivated in doing their part of the work efficiently and effectively. B. Marketing Mix Issues in Channel Management What are the issues that the business has faced when it comes to their products, price promotion, and place? The company face difficulties with these areas in their marketing mix, 1. Lack of commercial staff The business needs a commercial staff who will handle and optimize the process of purchasing a product and selling it to customers. The staff should be sales driven and expert with the service that the business offers to provide suggestions for complimentary products that the customer can buy in the stores. 2. Invisibility of your business The business lacks their brand awareness, the customer should be aware that their store in Mandalagan is not only a furniture business but a spa and salon. 3. Problems with the price of your product The business is having difficulties with their pricing. It is important to know their target market and provide information or campaigns that educate customers why the prices are just and right. C. Logistics Systems 1. Transportation What mode of transportation does the business use when ordering goods from suppliers or going on business transactions from places? The company efficiently manages its logistics operations by leveraging its fleet of vehicles. Recognizing the importance of maintaining control and optimizing efficiency, the company has invested in its own transportation infrastructure. By utilizing their own vehicles, they can closely monitor and tailor their logistics processes to meet specific requirements. This approach allows for greater flexibility, reduced reliance on external providers, and improved delivery timelines. With a dedicated fleet at their disposal, the company ensures that goods are transported securely and reliably, enhancing customer satisfaction and reinforcing their commitment to delivering exceptional service. 2. Materials Handling How does the business handle or move its materials/machineries/equipment from one place to another inside your workplace? Do you use any equipment/devices when moving and storing goods? If so, what are those equipment/devices your business uses when handling materials?
As a fundamental component of its materials handling activities, the business uses manual labor. The organization has made the decision to use the abilities and skills of its staff to efficiently handle materials because it understands the value of human competence and adaptability. The business makes sure that every step of the materials handling procedure is thoroughly completed with a team of committed professionals. Manual work is essential in preserving the integrity and quality of the materials, from receiving and sorting to packing and loading. This method enables close attention to detail and swift adjustment to shifting requirements. The business promotes craftsmanship and accuracy by depending on manual labor, which leads to a meticulous and dependable materials handling system. 3. Order Processing What is the order/service processing flow of the business? What system or tools does the business use when communicating to the consumers regarding their inquiries? The company employs a multi-faceted approach to streamline its order processing, leveraging a combination of Facebook, their website, and phone calls. Recognizing the diverse preferences and needs of their customers, the company has strategically integrated these communication channels into their operations. Through their Facebook page, customers can conveniently browse products, place orders, and engage in real-time conversations with the company's representatives. Additionally, the company's website serves as a comprehensive platform, offering a user-friendly interface for order placement, tracking, and updates. For those who prefer a more personal touch, the company's dedicated customer service team is readily available via phone calls, ensuring effective and efficient order processing. By employing these multiple channels, the company caters to a wide range of customer preferences, enabling a seamless and hassle-free ordering experience for all. 4. Inventory Control How does the business manage and monitor its inventory? Does the business use a control system that helps with forecasting that allows it to determine the business' inventory levels? If so, what inventory control system does the business use? To properly manage and monitor its inventory, the company uses SAP Inventory Manager conducted by the admin. The business has made an investment in this cutting-edge software solution because it understands the importance of precise and current inventory information. A wide range of functions provided by SAP Inventory Manager allows the business to effectively track, monitor, and optimize inventory levels. This technology provides the business with useful information on product availability, location, and movement, enabling informed decision-making and better inventory management techniques. The business may automate procedures, streamline operations, and make sure that inventory is always in line with client demands by using SAP Inventory Manager. By making it easier for the business to quickly satisfy customer requests, decrease stockouts, and lower carrying costs, it eventually improves operational effectiveness and customer happiness. 5. Warehousing Does the business have a warehouse for storing goods? If so, can you give an overview of the business' warehouse in terms of its size, layout, and storage capacity? The company utilizes a compact storage room within the building as its warehousing solution for storing goods to accommodate its inventory. While the room may be limited in size, the staff properly plan and organize the goods to maximize the room's capacity. The proximity of the storage room to the company's operations facilitates quick and convenient access to goods, ensuring efficient order fulfillment and minimizing transportation time. 6. Packaging What kind of packaging does the business use for the products offered? Does the business use any eco-friendly packaging or sustainable materials? If so, what are those eco-friendly or sustainable materials? The business does not use any eco-friendly or sustainable materials for their packaging. SPA Alhambra utilizes the packaging provided from their manufacturer. From their soaps down to the small bottle containers for their oils, sanitizers, alcohol, lotions, and creams, they use the same packaging they receive directly from their manufacturer and does not repack it for resale. D. Evaluating the Channel Members Performance How does the business evaluate its channel members' performance in doing their tasks? First is called MAP, which stands for Managing and Appraising Performance. This is a process that takes place every six months. During this evaluation, the business assesses each team
Transcribed Image Text:As a fundamental component of its materials handling activities, the business uses manual labor. The organization has made the decision to use the abilities and skills of its staff to efficiently handle materials because it understands the value of human competence and adaptability. The business makes sure that every step of the materials handling procedure is thoroughly completed with a team of committed professionals. Manual work is essential in preserving the integrity and quality of the materials, from receiving and sorting to packing and loading. This method enables close attention to detail and swift adjustment to shifting requirements. The business promotes craftsmanship and accuracy by depending on manual labor, which leads to a meticulous and dependable materials handling system. 3. Order Processing What is the order/service processing flow of the business? What system or tools does the business use when communicating to the consumers regarding their inquiries? The company employs a multi-faceted approach to streamline its order processing, leveraging a combination of Facebook, their website, and phone calls. Recognizing the diverse preferences and needs of their customers, the company has strategically integrated these communication channels into their operations. Through their Facebook page, customers can conveniently browse products, place orders, and engage in real-time conversations with the company's representatives. Additionally, the company's website serves as a comprehensive platform, offering a user-friendly interface for order placement, tracking, and updates. For those who prefer a more personal touch, the company's dedicated customer service team is readily available via phone calls, ensuring effective and efficient order processing. By employing these multiple channels, the company caters to a wide range of customer preferences, enabling a seamless and hassle-free ordering experience for all. 4. Inventory Control How does the business manage and monitor its inventory? Does the business use a control system that helps with forecasting that allows it to determine the business' inventory levels? If so, what inventory control system does the business use? To properly manage and monitor its inventory, the company uses SAP Inventory Manager conducted by the admin. The business has made an investment in this cutting-edge software solution because it understands the importance of precise and current inventory information. A wide range of functions provided by SAP Inventory Manager allows the business to effectively track, monitor, and optimize inventory levels. This technology provides the business with useful information on product availability, location, and movement, enabling informed decision-making and better inventory management techniques. The business may automate procedures, streamline operations, and make sure that inventory is always in line with client demands by using SAP Inventory Manager. By making it easier for the business to quickly satisfy customer requests, decrease stockouts, and lower carrying costs, it eventually improves operational effectiveness and customer happiness. 5. Warehousing Does the business have a warehouse for storing goods? If so, can you give an overview of the business' warehouse in terms of its size, layout, and storage capacity? The company utilizes a compact storage room within the building as its warehousing solution for storing goods to accommodate its inventory. While the room may be limited in size, the staff properly plan and organize the goods to maximize the room's capacity. The proximity of the storage room to the company's operations facilitates quick and convenient access to goods, ensuring efficient order fulfillment and minimizing transportation time. 6. Packaging What kind of packaging does the business use for the products offered? Does the business use any eco-friendly packaging or sustainable materials? If so, what are those eco-friendly or sustainable materials? The business does not use any eco-friendly or sustainable materials for their packaging. SPA Alhambra utilizes the packaging provided from their manufacturer. From their soaps down to the small bottle containers for their oils, sanitizers, alcohol, lotions, and creams, they use the same packaging they receive directly from their manufacturer and does not repack it for resale. D. Evaluating the Channel Members Performance How does the business evaluate its channel members' performance in doing their tasks? First is called MAP, which stands for Managing and Appraising Performance. This is a process that takes place every six months. During this evaluation, the business assesses each team
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